[NEWS] Coinbase obtains license in Bermuda to launch derivatives exchange

Coinbase, a US cryptocurrency exchange, announced in a blog post on the 19th that it has obtained a license from the Bermuda Islands' regulator.

Coinbase cited Bermuda's comprehensive digital asset regulations passed in 2018 as the background to obtaining the license, and said that the regulatory environment is known for its high level of rigor, transparency, compliance, and cooperation.

The company added that it chose the Bermuda Monetary Authority (BMA) as one of Coinbase's international hubs because it is an experienced and world-class financial regulator. According to a Coinbase official, the company plans to launch an offshore derivatives exchange in Bermuda as soon as next week.

Last month, Bloomberg reported that Coinbase is in discussions with institutional clients about a new offshore trading platform. It noted that the company is working with market makers and investment firms to prepare to launch a service separate from Coinbase's current main exchange service.

Fortune also reported on the 20th that San Francisco-based Coinbase is poised to diversify its revenue base by launching an offshore exchange in Bermuda to challenge major cryptocurrency exchange Binance.

The acquisition of the license was revealed the day after Coinbase CEO Brian Armstrong said that the lack of clarity in the U.S. cryptocurrency regulatory framework may lead cryptocurrency-related companies to seek overseas relocation.

Coinbase also announced a strategy called "Go Broad & Go Deep" in a blog post. The acquisition of the Bermuda license is part of that strategy.

The strategy is to advance Coinbase's philosophy of increasing economic freedom for all individuals and businesses around the world. To focus on the exchange's international growth, the company will establish regulated entities and local operations in overseas jurisdictions with strong regulatory jurisdictions.

The company plans to continue announcing services that will serve as a gateway to cryptocurrency while also providing localized infrastructure and services. These services will be provided in cooperation with regulators in each country, and it appears that the company is currently focusing on markets such as Singapore, Brazil, and Canada.

Additionally, the company is in talks with the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) to obtain a license as it accelerates its plans in the UAE.

Coinbase says it will expand economic freedom around the world and bring the next billion users into the crypto economy as the most transparent and trusted centralized exchange.

Source:Coinbase Blog,Fortune
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